Asda will cut fuel prices by up to 3p today - but the RAC reckons retailers could afford to go further.
The supermarket says it will reduce petrol by 2p per litre and diesel by 3p per litre. It means customers will pay no more than 121.7p per litre for petrol and 125.7 per litre for diesel.
Asda senior fuel buyer Dave Tyrer said: "With wholesale costs falling and half-term just around the corner, we're pleased to be able lower the cost of fuel and pass these savings on to our customers."
The price drop follows a claim from the RAC that retailers could afford to cut pump prices by up to 7p a litre, due to a fall in oil prices, from $60 a barrel at the beginning of the month, down to $58 a barrel. This, the RAC says, caused the wholesale cost to fall steadily since October.
The motoring services firm's fuel spokesman, Simon Williams, said: "Drivers are losing out badly, paying around 7p a litre more for petrol than they should be.
"This means a driver filling up a 55-litre family car is paying £3.85 too much.
"For some reason, in the last year or so our biggest retailers haven't been as transparent with their pricing as they have been in the past, which means motorists all over the country lose out as a result of them taking more margin than they have previously."
